Spotify Slows Down On Hiring Amid Macro Uncertainties

  • Spotify Technology S.A. SPOT slowed hiring by 25%, CNBC reports based on a companywide email from CEO Daniel Ek.
  • However, he added the company would “continue to still hire and grow, we are just going to slow that pace and be a bit more prudent with the absolute level of new hires over the next few quarters.”
  • Spotify had ~8,230 employees globally at Q1-end.
  • Also Read: Alibaba Continues Organizational Restructuring, Global Diversification To Beat Regulatory Crackdown Blues
  • Previously, during an investor conference, CFO Paul Vogel alerted about monitoring the global economy and evaluating its headcount growth in the near term.
  • Spotify had also predicted that its investments in podcasting and audiobooks would fuel growth over the next decade, Reuters reported.
  • Streaming giants like Netflix, Inc NFLX, which had a great run during the pandemic, are now facing the heat following recovery and surging inflation rates which have restricted consumer spending.
  • Several big names, from PayPal Holdings, Inc PYPLWarner Bros. Discovery, Inc WBD to Alibaba Group Holding Limited BABA, have undergone significant restructuring to beat the macro uncertainties.
  • Wells Fargo analyst Steven Cahall upgraded his rating on Spotify subject to certain conditions.
  • Price Action: SPOT shares closed higher by 7.4% at $105.31 on Wednesday.
  • Photo Via Company
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